I recently read an article by Bethany McLean titled “Blackstone’s big gamble: Has the world’s largest private-equity firm built a $114 billion house of cards?” And holy shit💩, could this be our next financial crisis if the cards start to fall.
Let’s play 🎥 a scene based of the article with two fake dudes breaking it down talking in a coffee shop!
And Action 🎬: Two dudes, 👴Alex Y 🧔🏽Jose, are sitting at a coffee shop, sipping their lattes and chatting.
👴Alex: Hey, have you heard about this thing called BREIT?
🧔🏽Jose: BREIT? Nope, never heard of it. What’s the deal?
👴Alex: Well, at first glance, it seems like a golden ticket to Blackstone’s real estate magic. But, get this, some people are saying it might be more like a house of cards.
🧔🏽Jose: Wait, what? Why?
👴Alex: Apparently, there are some cracks in the facade. Critics are saying BREIT’s valuations could be way off, like they’re inflating the value of their assets.
🧔🏽Jose: No mames wey! That sounds shady. What else?
👴Alex: It gets juicier. BREIT’s been using new investor money to pay back folks who want out. It’s like a Ponzi scheme in fancy real estate clothes!
🧔🏽Jose: Chingado wey! Yikes, that’s not good. Didn’t we learn anything from the last financial crisis?
👴Alex: Exactly! It’s like history’s repeating itself. Remember 2008? Mortgage-backed securities and all that jazz? BREIT’s playing a similar tune with its opaque practices.
🧔🏽Jose: And with all those commercial loans coming due soon, it’s like we’re heading for round two of the crisis. Especially with remote work taking over and office spaces going empty.
👴Alex: Totally. We need to learn from our mistakes and demand more transparency and oversight. Otherwise, we’ll find ourselves in the same mess all over again.
🧔🏽 Jose: simón Couldn’t agree more. Let’s spread the word and keep an eye on these financial shenanigans!
👴Alex and 🧔🏽Jose nodding in agreement, ready to take on the world of finance. And Cut!
Moreover, if what Bethany McLean reported in her article “Blackstone’s big gamble: is true, then it appears there’s a perfect storm brewing with BREIT and the commercial real estate market as a whole. With many commercial loans set to mature and the ongoing uncertainties surrounding office space demand, the stage is set for potential upheaval. If Blackstone, and other firms alike, are unable to address the looming challenges, including potential difficulties in refinancing high-risk commercial loans, the dominos (or cards) could indeed start to fall. Honestly, if I were a shareholder, I would seriously consider how to get my money out or be prepared for the worst. Let’s be real, the days of double-digit real estate price increases are a thing of the past. In the Phoenix/Scottsdale market, I see a steady, slow increase or decrease, both in residential and commercial real estate, but the commercial real estate market is concerning.
2nd pg in Spanish
AriZona Real Estate insider! 
Leave a comment